Letter of intent confirmed

Local businessman leads group interested in buying Lake Shore Hospital

October 29, 2013

Tony Borrello, a businessman from Silver Creek, confirmed Monday that a group he leads has submitted a letter of intent to purchase Lake Shore Hospital.

The letter of intent was released to Buffalo-area media outlets Monday, which stated the proposed purchase price is between $11 million and $15 million.

Borrello is also planning to open a hotel and water park in the Hanover area.

According to media outlets, the hospital would like Borrello to make a $50,000 non-refundable deposit on the hospital property.

When contacted Monday night, Borrello said he did not release the information on the intent to purchase to the media, but confirmed his group has submitted the letter to the hospital's board of directors.

He said he would not comment further until after the board has made a decision on the proposal at its meeting tonight.

J. Gary Rhodes, interim chief executive officer of the group, sent an e-mail to the OBSERVER this weekend noting the board will be meeting today. The gathering could determine the future of the financially strapped Lake Shore Health Care Center

"The board meets ... and will be presented with all offers," Rhodes said in his e-mail communication. "They will decide if any offer is acceptable or not."

Rhodes said he would not comment on the bid until after the board meeting.

Hanover Town Supervisor Todd Johnson also declined to comment on the new information on the bid, but has been keeping up to date on the situation.

"We have been working with Legislator George Borrello, who has been the point person to get ahold of Congressman Tom Reed, Assemblyman Andy Goodell and state Senator Cathy Young. He has reported to the board several times very recently," he said. "Our hopes are still high and we continue to support the people that work there. There has been a petition against the closing with nearly 1,500 signatures and hopefully they will make the right decision."

On Oct. 16, the Lake Erie Regional Health Board announced the January closing of Lake Shore Hospital. In the news release, it stated 460 jobs would be impacted by the closing.

Since then, at least one known potential buyer has emerged. However, Rhodes' e-mail indicates there could be more.

Lake Shore is expected to lose $7 million this year and was struggling financially even before Brooks Memorial Hospital agreed to partner with the hospital in 2008 after the Berger Commission recommended the facility's closure.